Fufeng Announces 2008 Interim Results With Strong Sign o...( Turnover Incr...)

Turnover Increased by 45.7% Profit Attributable to Shareholders Increased Significantly by 161.7%

HONG KONG, Aug. 14 /Xinhua-PRNewswire/ -- Fufeng Group Limited ("Fufeng" or "the Group"; HKEx: 546), a leading vertically integrated manufacturer of corn-based biochemical products in China, today announces its interim results for the six months ended 30 June 2008.

During the period under review, driven by the increased sales volume and selling price of major products, the Group's turnover increased to RMB1,630.4 million, representing an increase of 45.7%. The Group's gross profit increased by 108.3% to RMB237.7 million, profit attributable to shareholders significantly increased by 161.7% to RMB85.9 million. The earnings per share for the 1H of 2008 amounted to RMB 5.17 cents.

Commenting on the results, Mr. Li Xuechun, Chairman of Fufeng said, "After the market downturn in 2007, the Group's results in the 1H of 2008 have shown a strong sign of recovery. During the period under review, we increased sales volume and enlarged market share in MSG market. As for xanthan gum, the Group successfully captured additional market share by capacity expansion and competitive selling price."

The Group's two major business segments showed a strong sign of recovery. In the 1H of 2008, the ASP of the Group's major products in the MSG segment has rebounded completely. The sales volume of glutamic acid also increased by 15.6% in the 1H of 2008 from that of 2007. With the Group's strategy of moving from glutamic acid to MSG, the sales volume of MSG continued to increase by approximately 11.5% in the 1H of 2008.

During the period, the sales volume of xanthan gum increased by 247.9% to 7,831 tonnes while the sales amount increased by 196% to RMB168.7 million. The gross profit of xanthan gum also increased by 183% to RMB57.2 million. The ASP of xanthan gum decreased by 14.8% to RMB21,547 per tonne in the 1H of 2008. However, th
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